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Representative Consulting Engagements
HREC was engaged by a private hotel company to provide a macro overview of a mid-sized city relative to existing supply and demand conditions to yield recommendations regarding potential development opportunities within four distinct sub-markets. Our analysis identified emerging demand trends, the impacts for each sub-market and made recommendations relative to the appropriate hotel products for each sub-market and development timelines. Completed extensive feasibility analyses including cash flow forecasts under various scenarios for a proposed hotel located in the Midwest. Our study included various brand affiliations, hotel sizing analyses, and development cost estimates under each scenario. Retained by the City’s government to work with the CS&L convention center consulting group to determine the potential need for a new convention center and related hotel; analyzed and provided recommendations concerning potential development opportunities and facility sizing. HREC was retained by a major Hotel REIT to advise on the continued operation or disposition of two hotel assets located in Colorado and California. HREC’s analysis included cash flow projections and an IRR analysis as well as a hold/sell recommendation for each asset. HREC provided a complete appraisal in a self-contained report for a casino located in Atlantic City, New Jersey. HREC’s appraisal was utilized by the lender as part of their underwriting process related to a portfolio of five casino properties. HREC has significant experience providing valuation services, market and feasibility studies in non-traditional hotel markets such as those affected by natural disasters, emerging markets driven by natural resource exploration, international resort destinations (Caribbean), underperforming hotel markets and highly seasonal hotel markets. HREC provided valuation advisory services for a lender related to the conversion of a historic former office building to a nationally branded hotel facility. Our valuation analysis included Federal Historic Tax Credits, Empowerment Zone Bonds and New Market Tax Credits. Additionally, our analysis included valuation of the hotel asset under both market value and investment value assumptions. HREC was retained to provide litigation support and a retrospective valuation analysis in connection with a never-built hotel asset located within a major casino gaming market. HREC was hired by a private investment group to determine the potential need for a new conference center hotel in a Colorado resort town. In addition to a detailed market study that included occupancy and average rate forecasts, HREC provided recommendations on hotel and conference center brand and sizing, 10-year cash flow projections, investment rate of return analyses, and a regional and national conference demand generator survey. HREC is highly knowledgeable about the extended stay hotel market. We have completed many studies for both existing and proposed hotels operating with extended stay brands such as Residence Inn, Homewood Suites, Hawthorn Suites, Summerfield Suites, Value Place, TownePlace Suites and Staybridge Suites. Prepared a complete market value appraisal of a resort hotel in Vail, Colorado. The resort hotel achieves one of the highest average room rates within the Colorado Rocky Mountain region. Our appraisal included a market value of the hotel “As-Is” and “As Expanded”. Performed a market study including occupancy and average rate forecast for a full-service, first class hotel acquisition located in New Mexico. HREC has prepared complete appraisals with self-contained reports for various asset types including first-class, full-service hotels, limited and select-service hotels, extended-stay hotels and resort hotels. HREC was retained by a private investment group to determine the potential need for a new resort hotel adjacent to a new golf course in southern Colorado. In addition to a detailed market study that included occupancy and average rate forecasts, HREC provided recommendations on hotel and conference center brand and sizing, and the nature and extent of the amenity package. Performed an analysis of historic cash flows and forecasted future EBITDA levels for an expanding Native American Casino in California. Our analysis also included valuation of the casino “As-Is” and “As Expanded”. HREC represented a public entity in its efforts to attract a private hotel developer to construct a headquarters hotel facility. Work completed includes determination of appropriate financial subsidy levels, an analysis of potential market demand, preparation of cash flow forecasts and assistance in key deal terms. Separate market analysis studies for two cities in Arizona related to the potential development of several nationally branded, limited and full-service hotel facilities. Our analysis includes comprehensive demand generator surveys for each market area. The above list is a limited description of representative engagements. For specific information regarding representative engagements completed by Hospitality Real Estate Counselors, Inc., please contact Michael Cahill, President of Hospitality Real Estate Counselors, Inc. |